Question

DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a year and is planning to retire when he turns 60. From the following three options, DeShawn decides to buy the $900,000 20 year term policy. Given DeShawn’s scenario, assess whether DeShawn made a wise decision.

Answer 1

C. DeShawn's current policy will cover his family for an adequate period of time at his current salary

Step-by-step explanation:

Answer 2

Answer and Explanation:

In this situation, DeShawn’s current policy will cover his family for an adequate period of time at his current salary.

The most commonly bought policies usually ranging between 10 years - 20 years coverage. With deshawn salaries (even without factoring potential increases in wages in the future) , the current policies should be enough for Deshawn family because he will start to receive pension compensation 2 years after the policy is expired.